Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v2.4.1.9
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2014
Income Tax Disclosure [Abstract]  
Differences between effective tax rate and the statutory federal rate

The table below summarizes the differences between the Company’s effective tax rate and the statutory federal rate as follows for the year ended December 31, 2014 and 2013:

 

    December 31, 2014     December 31, 2013  
Tax expense (benefit) computed at "expected" statutory rate    $ (139,800 )   $ 212,200  
    State income taxes, net of benefit      (13,100 )     38,111  
Permanent differences :                
    Stock based compensation and consulting     61,100       -  
    Loss (gain) from change in fair value of derivative liability     (2,300 )     (11,088 ) 
    Amortization of debt discount and other non-cash interest     -       34,482  
                 
Increase (decrease) in valuation allowance      (94,100 )      (273,705 )
Net income tax benefit    $ -     $ -  
Deferred tax assets and liabilities
    December 31, 2014     December 31, 2013  
Deferred tax assets:                
    Net operating loss carryforward   $ 9,824,400     $ 9,730,279  
                 
Total deferred tax assets   $ 9,824,400     $ 9,730,279  
                 

 

Deferred tax liabilities:

                
Book basis of property and equipment in excess of tax basis   $ -     $ -  
Total deferred tax liabilities   $ -     $ -  
                 
Net deferred tax asset before valuation allowance   $ 9,824,400     $ 9,730,279  
Less:  valuation allowance     (9,824,400 )     (9,730,279 )
Net deferred tax asset   $ -     $ -